EV, Alt-Fuel Tax Credits Went to Crossovers, Other Cars

An audit performed by the U.S. Treasury Inspector General for Tax Administration — TIGTA for short — discovered that nearly 20% of all tax credits for electric and alternative-fuel vehicles were filed improperly. This 20% totaled $33 million in tax credits going to people who bought cars as varied as a Buick Enclave — a crossover with a combined mileage rating of 19 mpg — to the non-hybrid Hyundai Sonata.

The IRS said it is taking “corrective actions” on the erroneous credits, but whatever is done, the mistakes will be a blow to a program that many believe is artificially aiding the sales of EVs and other vehicles.